Google is too internally split up to have a single cohesive "maximize ad revenue" mission, especially now that cloud is the new golden goose and the future of search/advertising is hazy.
If cloud can sell compute to enterprise that can only use FHE, then they will not give a fuck if the ad goons are disgruntled about it.
you are 100% correct, this product is to enable things like healthcare and generally AI subscription stuff that otherwise people wouldn't touch because of sensitivity to disclosing sensitive data.
You have the CEO and the VPs who have final call when there are disputes below.
Ads doesn’t care until something affects them, GCP doesn’t.